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Report: WTO authorizes US to impose tariffs on EU goods

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Report: WTO authorizes US to impose tariffs on EU goods

The World Trade Organization officially allowed the U.S. to trigger duties on up to $7.5 billion in EU imports after the body ruled in favor of the U.S. over subsidies to Airbus SE, though the European trade commissioner urged the U.S. to instead engage in talks for a negotiated solution, according to media reports.

The WTO ruled Oct. 2 that the U.S. can impose tariffs on approximately $7.50 billion worth of imports from the EU as retaliation for subsidies provided by the bloc to Netherlands-based Airbus.

Washington wants to strike a negotiated settlement with the EU, but only if the latter terminates Airbus subsidies, Reuters reported, citing Dennis Shea, U.S. trade ambassador.

Previously, Cecilia Malmstrom, European trade commissioner, called on the U.S. to work toward a settlement, saying U.S. tariffs would complicate a potential deal, Bloomberg News reported.

In an Oct. 11 letter to U.S. Trade Representative Robert Lighthizer, Malmstrom reportedly said countermeasures of $12 billion could be imposed on the U.S. following a ruling on a similar case involving Boeing Co.

Retaliatory U.S. levies were due to take effect Oct. 18, Bloomberg News noted.